A Chicago real estate developer was sentenced to six years and eight months in prison for participating in a conspiracy that embezzled millions of dollars from the failed Washington Federal Bank for Savings.
Washington Federal was based in Chicago’s Bridgeport neighborhood. It was shut down in 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans.
According to the charges brought against him, developer Mirsolaw Krezja was part of a conspiracy that embezzled millions of dollars in bank funds. The embezzled money was disguised as purported real estate development loan disbursements to Krejza and others, but the conspirators were never required to repay these purported loans.
Krejza was convicted by a federal jury in 2023 of conspiring to commit embezzlement and falsify bank records and aiding and abetting embezzlement by bank employees. In addition to his prison term, Krejza was ordered to pay more than $2 million in restitution.
